Hanna Hark and Jamie Rice are watch repairmen who want to form a partnership and open a jewelry store. An attorney prepares their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value. The assets contributed by each partner and the liabilities assumed by the partnership follow: Assets Hanna Hark Jamie Rice Total Cash $ 80,000 $ 60,000 $ 140,000 Accounts receivable 104,000 40,000 144,000 Allowance for uncollectible accounts 8,000 6,000 14,000 Supplies 2,000 1,000 3,000 Equipment 40,000 20,000 60,000 Liabilities Accounts payable 64,000 18,000 82,000.
Prepare the journal entry necessary to record the original investment of Hark in the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank.
Prepare the journal entry necessary to record the original investment of Rice in the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank.